Great News For The Business-For-Sale Market

Great News For The Business-For-Sale Market

The biggest online business-for-sale marketplace, BizBuySell.com, just posted an article on the exciting results from their Second Quarter 2014 Insight Report on business transactions. Here are some highlights that should make you feel pretty good about the rest of 2014:

Q2 Business Transactions Continue To Grow

-The BizBuySell report reveals that “second quarter 2014 small business transactions reached the highest levels reported since before the recession hit in mid-2008.”

-Highest level of continued growth since Q1 of 2013, “when the current six quarter trend of higher transaction activity began.”

-Increased growth is due to a range of factors, including improved supply and demand, better small business performance, and more accessible capital.

Small Business Performance Improving

-A rise in transaction levels can be directly attributed to small businesses performing better financially.

-“Both the median asking and median sale price for small businesses rose in Q2 2014.”

-Demand is high, “as evident from the number of transactions, but the historically low financial multiples mean that buyers are receiving excellent value on their purchasing dollar.”

The Future Looks Bright

-Optimism is rising among business buyers and sellers, mainly because “small business transactions rose 49 percent in 2013 and are still climbing in 2014.”

-Business brokers are similarly optimistic that growth will continue in 2014, due to “seller price expectations becoming more realistic (27 percent), a continued improvement of the small-business environment (20 percent), an increase in the number of buyers (19 percent) and an increase in the number of sellers (18 percent).”

In our own practice, after a relatively slow start to the first half of 2014, we’re seeing robust transaction activity in the second half. We agree with what BizBuySell is reporting. If you’re an owner, it’s the best time in the last six years to seek an exit. We stand ready to assist you in this process.

VR Business Sales New Haven represents owners of businesses valued between $500,000 and $25 million or with annual revenues from $1 million to $25 million. The office provides exceptional merger and acquisition advisory services to companies operating within a wide range of industry segments in Connecticut, Southern New England and Metro NY.